Here is the info on the Eni field it discovered south of the SOQ offshore block (note this is a gas field with lots of liquids in it as SOQ's well had):
The location is in Area D, 22 km (13.7 mi) from the producing Bahr Essalam field. Eni North has a 100% operated interest in the concession.
The B1-16/4 discovery well, drilled in 150 m (492 ft) of water, encountered gas and condensates in the Eocoen-age Metlaoui formation.
During testing, constrained by surface facilities, the well flowed 29 MMcf/d (821,189 cm/d) of gas and more than 600 b/d of condensate with a 64/64-in. choke. In a production scenario, the well could deliver more than 50 MMcf/d (1.4 MMcm/d) and 1,000 b/d, Eni added.
Well, SOQ is finally dead. I sure liked looking at the awesome geology and 4 wells that were drilled at TnT. They had 4 TCF in their hands and screwed up that deal big time. That is so sad. Regards.
I have positioned myself where I have dividend paying major oil stocks, but also have 1/2 my cash in 2% SVF ready to buy if major oil companies drop in price resulting in the dividends going up. A major like Exxon etc can and will pay their dividends, and unlike the 2008-09 recession Exxon's dividend now is $2.76, or about 3% vs the miserable 1.7% dividend it paid during the recession. I have not seen an article related to how the dividend today is holding up the price per share now much better than it did during the recession.
Do other people see this difference between the 3% dividend now vs the 1.7% dividend during the recession as a reason to hold Exxon? Regards.
I agree, crude will drop again then it will go back up after it drops, and Exxon will follow that drop and also that increase in price of crude. I think Exxon will drop into the high $80's again after the dividend pays Friday and after crude oil drops off after today. both crude and exxon will go up after the drop, so hang on if in a taxable situation, but if you can, buy in at a lower price if in a 401K etc.
Just show that Exxon is well positioned to keep FCF coming in, do not mention stock buy back, or just say it will be determined if it may be better to buy back Exxon if it goes lower instead of buying it at current prices. Cut back capex as we did in 1986-87, and keep the dividend up and pay more dividend as we did in 2008-2009 regardless of the price of crude. Exxon needs to be a leader .... cutting capex just or the time period that crude is low will not upset the long range plans or projects. Exxon already mentioned that they have had major capex program over the past 5 years and they said capex would be cut before the low price event happened.
I hope this is their way of easing away from their stick to the low price plan deal. This is going to cause a whipaw reaction in oil prices sooner or later. It will also disrupt future oil needs since so many companies are being disrupted. If we are actually only about 2% over supplied with world crude. How low do you think Exxon will go. I am hanging in so I can collect the dividend over time, but I also have 45% of my assets in cash so I can buy back in when the share prices have dropped much lower. I hope they do not go much lower, but the dividend should stay the same, and/or it should go up just as it did during the recession and also during the 2008 drop in crude prices to the 30's. Its to late for me to bail now, so I am staying and waiting for Exxon to drop lower. Exxon should be the best situated major to ride out the low price OPEC reel them in deal to gain market share. This could backfire and put us into a recession worldwide. Any gain in spending due to low oil prices will be offset due to losses from the massive oil industry. We need stable crude prices in order to secure crude oil in the future. If not, get ready for the whipsaw price ordeal. This is the 1st time I have not sold off and waiting out the low price deal .... I have always sold and re-deployed the assets later with no losses, but not this time -- I have lost a lot so far. Any input to easy my pain would be appreciated. I still cannot believe that this was not sensed coming down the line ... the massive cut in crude oil prices. There is only about a 2-4% surplus which will take 6-12 months to turn around, but then are we set up to meet world demand when we wipe out the higher priced new oil that is needed to meet world demand .... we need both new oil and old lower priced oil BOTH to meet world demand. Just old low price conventional oil will not meet world demand even if world demand drops to 90mbopd. I guess we have about 6-12mbopd of new high priced non-conventional oil that is needed.
The problem is the major do not have to service the type debt that the shale producers have to. It will come down to who can pay the banks what they have borrowed to do business. Regardless, you make an interesting point. I know I sure got blasted by this incredible drop in crude prices. Regards.
2/7 is Sat ..... that doesnt make sense. Also, would anyone sell Exxon here at $92 +, and does anyone think it will hold? Regards
SE is a good pipeline company with a great dividend, so if not trading it is a good long term hold.
I did not know SE spun off Duke Energy. You sure make a investment. I'm just putting some idle money to work when the price dropped so low. I guess I need to look at SE's forward PE since it is pretty high right now. Regards..
I bought 500 at 36.17 back in the Oct low. Then I really lucked out and bought 400 at 33.73 after crude was down to $55/bbl --- pure luck. Since its a great dividend stock, I thought I'd keep it, but the PE is high. I assume SE will go down if crude drops lower, but I'll hang in there if so. I had a sell in for the 33.73 shares at 37.76, but it has not gone up that far yet. Do you think SE will be a long term hold, or trade it if I can get a fast good profit. Regards.
well, it looks like we got lucky with the $55.55 --- it seemed to pivot down and around the 55.50 level. Again, i picked the $55.55 level due to the amount of time that crude was in a free-fall. As with 2008, 6 months is a long time for oil to free-fall. If it had slowed down, or leveled off, that would be different, but 6 months of just dropping takes it toll, and then fundamentals kick in after it has gone past a safe level. There will still be production added to the world market until about 1-2 quarter 2015, then it will slow down some. By 12-18 months crude prices will be back up again to $80-$100/bbl. Regardless SE is a great deal since they will be paid the same regardless of crude prices. I was lucky to pick up some shares at 33.74. I got my original shares in the Oct drop at 36.18, so not even yet.
Just curious to see what WLL owners think. I assume WLL is to small for a major?, like Exxon, but who else?
10-4 blanco. Rough ride for sure. I was looking at some field data on the net yesterday and I came across some BG data on the 3 discovery wells that SNG drilled at TnT. After they drilled the wells, I had calculated the reserves from maps that SNG supplied online. The reserves were around 3-4TCF for the 3 wells and any development wells. That is about the same number that BG has for the 3 wells as they are ready to put them into full production. BG was the JV farm-in partner with stiff lease terms, but BG drilled the down-dip well which had proved gas sands and a water contact in it, so well SNG drilled was a low risk updip well. To think that SNG had 70% of that deal, but #$%$ it away with the shell company that Noval created. 3-4 TCF is a lot of gas, plus the condensate that comes along with the natural gas, lperiod. That could have been and should have been the share holders payback for investing in SNG/SOQ. Mercy, that is really a bad deal for us. Regards to you all, this entire deal makes me sick as it does you.
Just buy Exxon and let it pay you the 3.2% dividend .... do not sell it, just collect the dividend. Exxon has always been able to pay their dividend because they have been so very conservative and manage their cash flow well.
I agree with Rick Santelli -- WTI will level off at $55.55. This is where it leveled off during 2008 after a 6 month drop. Its the time period that it drops according to Rick. Its been 6 months now since WTI started dropping. Regards
Sentiment: Strong Buy
I the producer cannot pay the freight, some other producer will come along and pay the freight. With lower fuel prices people will use the same or more hydrocarbons, so the use will not go away. A bigger better situated company with good cash flow will come along and buy the heavy debt producer that goes out of business. That's merger and acquisition due to price changes.
Sentiment: Strong Buy